Spain's Tremon Files for Administration

Spanish property group Tremon on Monday said it had filed for administration after failing to meet debt payments, hurting shares in banks which have total exposure of around 1 billion euros ($1.27 billion), Reuters reported. Tremon is the second large Spanish property group to seek administration this year following Martinsa Fadesa. Among its biggest creditors are Banco Popular, with around 200 million euros exposure, unlisted savings bank Bancaja with 100 million followed by Banco Pastor with 95 million. Pastor stock was off 0.17 percent after it said Tremon's troubles would not impact its results or bad debt level. Spanish real estate firms have suffered falls of over 30 percent in house sales this year as they have been left with a glut of unsold homes during global financial turmoil. Madrid-based Tremon, which last year abandoned efforts to list its shares, has taken no decision on the future of its 600-strong workforce. Construction and real estate firms hold over 25 percent of outstanding debt in Spain and represent over a quarter of all companies and individuals suspending debt payments, according to Bank of Spain and government data. Read more.